The U.K deficit fell to £6.7 billion in May according to the latest figures, in an encouraging development for the Treasury.
The latest figures from the Office for National Statistics (ONS) reveal that the UK borrowed £6.7 billion, down from £7 billion recorded for May the year previously, and significantly less than April’s £9.4 billion deficit.
Wednesday’s public finance report also shows that Britain’s total national debt now stands at £1.737 trillion, 86.5 percent of annual GDP.
Finances were boosted by a rise in the tax takes. VAT receipts increased by 4.3 percent to £11.2 billion in May, potentially the highest for May on record.
This comes ahead of the highly anticipated Queen’s Speech and state opening of parliament, which had been delayed in light of the unexpected hung parliament election result.
Uncertainty and anticipation for the speech has put the sterling under pressure in recent days, having dropped below $1.26 in early trading, following on from Tuesday’s losses.
This follows remarks made by Bank of England Governor Mark Carney who remains concerned about the long-term ramifications of Brexit on the British economy. Mr Carney did not for see interest rates to be raised in the near future as a result of persistent uncertainty.
The Queen’s speech is set to take place on Wednesday, and is said to be considerably less formal and ceremonial than usual. This is thought to be to reflect the more sombre national mood in light of recent tragedies and terrorist attacks that have taken place in recent weeks.
This echoes the tone of the Queen’s birthday statement which was released on the weekend. Nevertheless, Her Majesty praised the resoluteness of the country.
The statement read:
“Put to the test, the United Kingdom has been resolute in the face of adversity. United in our sadness, we are equally determined, without fear or favour, to support all those rebuilding lives so horribly affected by injury and loss.”
Parliament is set to debate the contents of the Queen’s speech later on Wednesday afternoon.